Tweedy Browne

Tweedy Browne

Last Update: 2014-02-12
Related: Tweedy Browne Global Value

Number of Stocks: 49
Number of New Stocks: 0

Total Value: $4,303 Mil
Q/Q Turnover: 0%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Tweedy Browne Watch

  • Tweedy Browne's William Browne Speech to Ivey Business School



  • Money Managers Tweedy Browne Report New Stocks, Topped by Johnson & Johnson

    Tweedy Browne (Trades, Portfolio) is a 93-year-old fund which focuses on undervalued securities, and which gained its investment approach from the late Benjamin Graham. The fund is owned and managed by William Browne, Thomas Shrager, John Spears and Robert Wyckoff, Jr.


    Tweedy Browne (Trades, Portfolio) had a pretty quiet quarter during the fourth quarter. The fund did not buy any new stocks or sell out of any current holdings, and only made slight increases and reductions to their current positions. The Tweedy Browne (Trades, Portfolio) fund holds 49 stocks valued at $4.3 billion.

      


  • Tweedy Browne Comments on Antofagasta

    Portfolio activity was once again modest duri ng the quarter. Only one new position was established: Antofagasta (LSE:ANTO), a UK-listed Chilean coppe r mining company. The company owns majority interests in five copper mines in Chile and a railw ay, and we believe is a we ll run, low cost copper producer with a strong balance shee t. The company is profitable, gene rates free cash flow, and pays a dividend. While it is difficult to predict the direction of copper pr ices with any degree of certainty, declining ore grades and mine clos ures across the world should have a meaningful effect on supply over the next several years, resulting in better pricing in the future. At purchase, Antofagasta was trading at approximately 6.2 times enterprise value to EBIT (ear nings before interest and taxes), which was near its 52-week low, was in a net cash positi on and paid a dividend yield of 1.6% . We also added to a number of pre-existing positions in our Funds, including DB S Group, GlaxoSmithKline, HSBC, TNT Express, and G4S.


     

      


  • Tweedy Browne Fund Fourth Quarter 2013 Commentary

    Global equity markets shrugged off concerns abou t central bank tapering and continued to gain momentum in the fourth quarter, capping off another excellent year for equity returns. Despite carrying cash reserves that ranged from approximately 10. 9% to as much as 20.3%, a ll four of the Tweedy, Browne Funds finished the quarter and year on a str ong note, producing annual returns between 18.77% and 22.68%.


    As we write, the S&P 500 and the MSCI World Index are near or at all-time highs; the cyclically adjusted Shiller P/E is at 26X earnings versus 15. 9X earnings for its long term median; global IPO markets are heating up; corporate lending standards are once again deteriorating (covenant-lite loans are back); and many of the stocks we own and follow ar e now trading at or near our estimates of intrinsic value. That said, we are comfortable with our port folios' current holdings, and continue to search the globe for individual securities that fit our demand ing criteria. While bargain hunting is currently challenging, we remain confident that our patience will be rewarded. 

      


  • Tweedy Browne Comments on National Oilwell Varco

    National Oilwell Varco (NOV)'s stock symbol is NOV, and industry experts insist it really stands for "no other vendor" as it is the almost universally preferred manufacturer of offshore drilling rig equipment in the global oil & gas industry. It has a leading market position in the segments of the oil & gas industry that are generating the most growth, deepwater drilling and shale drilling. The company has historically generated high returns on capital, has what we believe to be a conservative balance sheet with minimal debt, and, given the uncertainty associated with near term growth of drilling equipment orders, we were able to purchase shares at a significant discount to our estimate of the company's intrinsic value.

    From Tweedy Browne's 2013 semi-annual report.  


  • Tweedy Browne Comments on Banco Santander

    Banco Santander (Brasil) represents our first investment in a Brazilian company. With emerging markets such as Brazil contracting somewhat as China slows, and money moving out of emerging markets based on expectations of a change in U.S. Federal Reserve monetary policy, we were afforded a pricing opportunity in what we believe to be a very attractive bank. Although Banco Santander S.A. (BSBR), a large Spanish bank, is a significant shareholder of Banco Santander (Brasil), the Brazilian bank is an independently listed subsidiary with its own management team, board of directors, and capital base. At initial purchase, Banco Santander (Brasil) was trading right around tangible book value, below 10 times 2013 estimated earnings, and had a dividend yield of approximately 5%. For a bank, it is extremely underleveraged (19.9% Tier 1 capital ratio), has high net interest margins, and among its three local competitors, has the highest consumer exposure to what we believe will continue to be a rapidly growing middle class over the longer term in Brazil.

    From Tweedy Browne's semi-annual 2013 report.  


  • Tweedy Browne Investment Adviser’s Letter to Shareholders - Semi-Annual Report

    "Everything is in a state of flux, including the status quo." – Robert Byrne

    The above quote would certainly seem to contain a modicum of truth, and if your basis for subscribing to this adage rested on reading the financial press, you might well conclude it contains a healthy dollop rather than just a modicum. For example, Japan, which has been off the radar screen of investor attention for many years, reemerged with Prime Minister Abe's plan to breathe new life into an economy which has been moribund for years. Investors including Mrs. Watanabe (a Japanese term for stock and currency speculators) decided not to wait for hard evidence that Prime Minister Abe's "three arrows agenda" for turning around the economy would succeed, and have bid up the Nikkei Index 65% over the last twelve months. We will comment a bit more on this later but, briefly, we are not yet convinced that a new day has dawned in Japan and have on balance sold down some of our Japanese holdings based on some very full if not overly generous individual company valuations. Japan is walking a tightrope as it tries to emerge from a prolonged period of almost non-existent economic growth while managing a public debt over twice the size of the economy and at the same time not triggering a large rise in the government cost of borrowing, which is currently well less than one percent for a ten-year bond.  


  • Tweedy Browne – Third Quarter Stock Buy

    Founded over 90 years ago, Tweedy Browne is a $19 billion investment firm still following in the steps of Benjamin Graham. Their funds returned a solid 5.3% and 8.47% for the third quarter, but the stock market’s continued climb reduced the number of undervalued opportunities. As the firm’s managers write in their third quarter letter:

    “Cash reserves in all four of our Funds have been slowly but steadily increasing over the last year as global equity markets gained momentum. As valuations have climbed, risks now appear somewhat higher. Bargain hunting remains challenging, but we have plenty of dry powder should the markets present us with an opportunity.”  


  • Tweedy Browne Global Value Fund Reduces One in UK, Two in Japan

    The third quarter portfolio of the Tweedy Browne Global Value Fund (TBGVX) shows 102 stocks, two of them new. The fund’s total value is $5.69 billion, with a quarter-over-quarter turnover of 2%. The portfolio is currently weighted with top three sectors: consumer defensive at 20.3%, financial services at 20.2% and consumer cyclical at 13.4%. As of Sept. 30, 2013, the fund is returning 14.20% year-to-date, compared to 18.39% in 2012.

    In the third quarter of 2013, the Tweedy Browne Global Value Fund reduced these three stocks that trade on the London Stock Exchange (LSE) or the Tokyo Stock Exchange (TSE). Prices are quoted in GBP or £ (1 GBP = $1.62 USD), as well as JPY or ¥ (1 JPY = $0.01 USD).  


  • Tweedy Browne Comments on Cenovus

    We also added Cenovus (CVE) to the Worldwide High Dividend portfolio during the quarter. This Canadian oilsands operator has a strong production growth profile with low cost in situ oilsands reserves. At purchase, Cenovus was trading at a substantial discount from our estimate of intrinsic value and was paying a dividend yield of 3.2%.

    From Tweedy Browne's third quarter 2013 commentary.  


  • Tweedy Browne Company Third Quarter Commentary

    While global equity markets were buffeted somewhat in the 3rd quarter by macro events such as the Syrian civil war, budget and debt ceiling issues in the U.S., and ongoing concerns about China's growth, it was not enough to stop the markets' strong upward momentum. All four Tweedy, Browne Funds finished the quarter on a positive note, producing returns between 5.30% and 8.47%, despite carrying cash reserves that ranged from approximately 9.5% to 21.4%.

      


  • Tweedy, Browne Comments on National Oilwell Varco

    The other new holding is National Oilwell Varco (NOV), a leading global manufacturer of drilling rig equipment and consumables to the energy industry. It has a leading market position in the segments of the oil & gas industry that are generating the most growth, deepwater drilling and shale drilling. The company has historically generated high returns on capital, has what we believe to be a conservative balance sheet with minimal debt, and at purchase was trading at a significant discount to our estimate of the company's intrinsic value.

    From Tweedy Browne's second quarter 2013 letter.  


  • Tweedy, Browne Buys 2 New Stocks

    Tweedy, Browne, a global value investment firm with $15.6 billion in assets under management, has been pursuing Ben Graham-style, undervalued stocks for 93 years. From the bottom of the financial crisis in March 2009 through the second quarter, Tweedy, Browne’s funds have compounded on an average annual rate between 19.27% and 21.07%.

    In the last 12 months, returns have fallen short of the benchmark as the managers increased their cash reserve and had only marginal exposure to the roaring Japanese market. As they explained in their second quarter letter:  


  • Tweedy Browne Comments on Banco Santander

    Although Banco Santander Spain (SAN) is a significant shareholder of Banco Santander Brasil, the Brazilian bank is an independently listed subsidiary with its own management team, board of directors, and capital base. At purchase, Banco Santander Brasil was trading at a discount from book value, below 10 times 20 13 estimated earnings, and had a dividend yield of approximately 5%. It has a strong capital position (underleveraged), high net interest margins, and among its three local competitors, it has the highest consumer exposure to the rapidly growing middle class in Brazil. While the company has traded down since our initial purchase, we think largely due to the general sell-off in the emerging markets and the demonstrations in Brazil, we are very positive about the longer term prospects for the company.

    From Tweedy Browne's second quarter 2013 investor letter.  


  • Tweedy, Browne Fund Second Quarter 2013 Commentary

    Global equity markets continued their advance through April and May, but ran into a wall of worry and volatility in June as concerns arose regarding the prospects for Federal Reserve "tapering" of bond purchases, and increasing evidence that the Chinese economy may be slowing. While our portfolio holdings continued to make economic progress, returns for the Tweedy, Browne Funds on an absolute basis were for the most part marginally negative with the exception of the Value Fund which eked out a slightly positive return for the quarter. Since quarter end, the markets and our Fund s have bounced back recovering much of the loss sustained in June.

    Returns in our Funds over the last twelve months have ranged from 13.89% to 19.12%, and since the bottom of the financial crisis in March of 2009 have compounded on an average annual basis between 19.27% and 21.07%. Our underperformance relative to benchmarks over the last twelve months has been largely due to our increasing level of cash reserves, an d our modest exposure to the Japanese market which is up over 50% in local currency (MSCI Japan).  


  • Tweedy Browne March 2013 Annual Report



  • Tweedy Browne Study - The Dividend Yield Return Advantage



  • Tweedy, Browne Funds Q1 2013 Commentary

    Global equity markets were up substantially in the first quarter with record highs achieved in some markets. The Tweedy, Browne Funds followed suit with attractive absolute results held back somewhat on a relative basis by their significant underweighting in Japan, and growing cash reserves. The Funds’ portfolio holdings continued to make economic progress for the most part, but in some instances their market prices have caught up to or modestly surpassed our conservative estimates of intrinsic value. Longer term comparisons remain very favorable net of fees.
      


  • Tweedy Browne Global Value Fund Buys 5 New Stocks

    In keeping with GuruFocus’ expansion to worldwide stock market coverage, we have begun tracking firms with outstanding global investing track records, including Tweedy Browne’s Global Value Fund. Some stats on the fund: It contains 101 companies, has a total value of $4.91 billion and had a quarter-over-quarter holding turnover of 3% in the first quarter.

    The diversified portfolio is “focused in developed markets, and where practicable perceived foreign currency exposure is hedged back into the U.S. dollar, according to the website, and is managed by a team of Tweedy Browne Partners.  


  • Why Did a Stodgy Old Value Firm Like Tweedy Browne Buy Shares of Google?

    I've long had an aversion to investing in technology companies because I really don't feel like I can value them accurately. I have no insight as to how likely it is that some other company will come a long with a better "mousetrap" and antiquate the technology of a company I'm looking at investing in.

    If you are trying to practice value investing you obviously must first be able to value a company. To value a company you must be able to convince yourself with a reasonable degree of certainty the future cash flows that company is going to generate. For technology companies, given the rapid nature of change in the industry, having much if any certainty over those future cash flows is often impossible.  


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